In April, Peru’s gross domestic product grew by 5.28%, marking the highest rate of growth in 32 months, according to government statistics agency INEI. This was unexpected as analyst predictions were for a 1.4% increase and government expectations were for a 4% rise. The increase in GDP was mainly driven by an nearly 24% growth in agriculture and livestock production, as well as an 11.4% expansion in the manufacturing sector.
Despite this, the mining and hydrocarbons sector saw a decrease of 4.34% in April, ending a period of uninterrupted growth that lasted over a year. This decline was attributed to a 4.5% contraction in metallic mining activity. Despite this setback, Peru’s overall economic growth has been fueled by a 29% increase in public spending by the government between January and May.
Economy Minister Jose Arista indicated that Peru’s economy likely grew by 4% in both April and May, as efforts are being made to recover from the recession that began last year. The government expects economic activity to remain strong in May, particularly in the fishing and primary manufacturing sectors. The boost in GDP and increased public spending are positive signs for Peru’s economic recovery.
